? for ladynred... please

[mooner]

What is the name of your state? MI

Hi ladynred!

In a post a few days ago regarding garnishments you stated, "If you file for BK, then anything taken out of your check 90 days prior to filing is returned to you."

Can you point me to the code where this is discussed? Is this any garnishment? I had never heard this before. And wouldn't the trustee want this money?


Thank you - as always!

 

[planner]

The money will get returned to the estate and if exempted you get it back. The garnishments will only get paid to the estate if over $600.

 

[JETX]

Neither of the statements (attributed to Ladynred and Planner) is true.

Debtors must disclose in their bankruptcy schedules, payments to any single Creditor aggregating more than $600.00 within 90-days before filing bankruptcy. Debtors must also disclose payments of $600.00 or more to "insiders" including relatives and business associates within one year before filing bankruptcy. Bankruptcy law prohibits preferring one creditor over another, and payments to regular creditors within 90-days of filing bankruptcy, and to relatives or business associates within one-year of filing bankruptcy, are considered preferential payments. The Bankruptcy Trustee can recover any preferential payments made and divide the proceeds equally among your other Creditors.

In the case of a wage garnishment for a judgment, they are usually NOT seen to be a preferential payment.

This process can be found in the Bankruptcy Code at 11 USC 547:
http://www4.law.cornell.edu/uscode/11/547.html